(Alliance News) - Telecom Plus PLC on Wednesday said it crossed the full-year finish line with slightly lower profit, as expected, and is set to maintain its annual total payout.
Telecom Plus is a London-based supplier of gas, electricity, landline, broadband and mobile services to residences and businesses.
Adjusted pretax profit for the year ended March 31 is expected to be 7.9% lower year-on-year at GBP56 million, having netted GBP60.8 million in 2020, but is in-line with expectations.
The dip in profit is due to lower retail energy prices from October 1, higher regulatory costs, and extra operating costs associated with Covid-19, the company said.
Telecom Plus said: "The combination of lockdowns and social distancing restrictions that were in place for much of the year created a challenging environment for partners to grow their businesses.
"Against this backdrop we were extremely pleased that so many succeeded in doing so, particularly during the second half, when activity levels amongst our Partners recovered on the back of increasing confidence in the competitiveness of our proposition, and growing familiarity with the new remote sign-up tools we introduced during the spring."
Telecom Plus is set to maintain its total dividend for the year of 57 pence per share.
Going forward, Telecom Plus said its business remains well positioned to build shareholder value over both the near term and the years ahead.
"We are extremely positive about the pent-up demand for the flexible income opportunity that we offer our partners. Prolonged periods of working from home have led many to reconsider their work-life choices, and we offer a meaningful near-term income opportunity that requires no previous qualifications and has no geographic limitations. This is expected to drive increased partner recruitment and activity in the months and years ahead," the company said.
Results for the year are due June 15.
Telecom Plus shares were down 0.3% at 1,276.00 pence each in London.
By Greg Roxburgh; gregroxburgh@alliancenews.com
Copyright 2021 Alliance News Limited. All Rights Reserved.
Telecom Plus (TEP)